Celsius Network, the “cryptocurrency bank” valued at US$3 billion, is again under scrutiny this week after rumors spread that its CFO Yaron Shalem had been arrested for fraud in Israel. The company has received funding and loans from Tether, issuer of the ubiquitous but troubled USDT “stablecoin.”
Let’s try this again. Really easy question for Celsius Network CEO @Mashinsky:
Was your CFO Yaron Shalem recently arrested in Israel over fraud allegations relating to the Moshe Hogeg case?
— Nate Anderson (@ClarityToast) November 24, 2021
At the time of writing, Shalem’s arrest has not been confirmed in news reports. However, a number of Twitter accounts posted the claims separately, one saying Celsius was “about to blow.”
El Salvador suddenly announces that due to overwhelming demand for Volcano Bonds, they’ll going to increase the bond size to two billion.
In reality it’s because Celsius is about to blow, with CFO arrested. https://t.co/d4RRcxU9Na
— Bitfinex’ed 🔥 Κασσάνδρα🏺 (@Bitfinexed) November 24, 2021
Celsius and Tether
Tether has provided a loan to Celsius Network and was the lead investor in a US$30 million funding round in 2020.
Each Tether (USDT) is designed to be worth approximately US$1, and the asset is used as a stand-in for USD on several of the world’s largest exchanges. Its value was purportedly derived from an equivalent “real” U.S. dollar held in…